The sixteen participants played in four groups of four in the first round. The three best teams in each group formed two groups of six in the second group, the remaining teams played in a further group for places thirteen to sixteen. The results from the direct duels of the first round were adopted. After the second round, the best four teams determined the new world champion in the semi-finals and final. The other teams also played the positions five to twelve in knockout games.
The new world champion would have qualified for the 1988 Olympic Games . Since the USA as defending champions and the Soviet Union as winners of the World Cup had already qualified, Bulgaria , who was third in the World Cup , took the place.
Host France and the top seven teams from the last World Cup were automatically qualified. There were five more starting places for the best-placed teams in the last continental tournaments. In this way, Czechoslovakia ( European Championship 1985 ), Taiwan ( Asia ), Egypt ( Africa ), the USA ( NORCECA ) and Venezuela ( South America ) reached the final round.
The last three participants were determined at a B tournament from April 3rd to 12th in Piraeus . There, eleven teams played first in a group of six and five and then in placement games to participate in the World Cup in France.